Bank

Chair

<p>The post <a href="https://coinpedia.org/news/global-central-banks-extend-crypto-regulation-deadline-the-real-reason-behind-the-delay/">Global Central Banks Extend Crypto Regulation Deadline: The Real Reason Behind the Delay</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The Group of Central Bank Governors and Heads of Supervision (GHOS) has decided to extend the deadline for implementing its prudential standard regarding banks’ exposure to crypto-assets. Previously, it was expected to be enforced by January 2025. However, the new deadline is set for January 1, 2026. This adjustment results from the requirement for a cohesive global regulatory framework and improved financial stability.</p> 
<h2 class="wp-block-heading" id="h-rationale-behind-the-extension"><strong>Rationale Behind the Extension</strong></h2> 
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   <p lang="en" dir="ltr">The Group of Governors and Heads of Supervision of the <a href="https://twitter.com/hashtag/BaselCommittee?src=hash&amp;ref_src=twsrc%5Etfw">#BaselCommittee</a> commend “good progress” on implementing <a href="https://twitter.com/hashtag/BaselIII?src=hash&amp;ref_src=twsrc%5Etfw">#BaselIII</a> and reiterate their expectation for full and consistent implementation as soon as possible <a href="https://t.co/ErupSvGzRF">https://t.co/ErupSvGzRF</a> <a href="https://t.co/RqOL6J2zYs">pic.twitter.com/RqOL6J2zYs</a></p>— Bank for International Settlements (@BIS_org) <a href="https://twitter.com/BIS_org/status/1790070025165955109?ref_src=twsrc%5Etfw">May 13, 2024</a>
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<p>The decision to postpone the deadline reflects GHOS’s assessment of the progress and readiness of the member jurisdictions to adopt the new standards. Given the diverse pace of regulatory adaptation across various countries, the extended timeline aims to foster fair competition and ensure greater stability in global markets. In addition, the step highlights the significance of allowing ample time to develop clear and unified regulatory frameworks for crypto asset exposure.</p> 
<h2 class="wp-block-heading" id="h-implications-and-significance-of-the-extended-deadline"><strong>Implications and Significance of the Extended Deadline</strong></h2> 
<p>Tiff Macklem, Chair of the GHPS and Governor of the Bank of Canada gave insights on the importance of the extended implementation period. </p> 
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 <p>“The extension will be of great help, in order to make sure that the implementation of the cryptoasset standard is both complete and uniform in all the member jurisdictions”</p> <cite>Macklem said.</cite>
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<h2 class="wp-block-heading" id="h-central-bank-group-s-regulatory-endeavours"><strong>Central Bank Group’s Regulatory Endeavours</strong></h2> 
<p>The extension of the deadline for crypto regulation is part of the Basel Committee’s broader strategic initiative to address emerging financial risks. The committee’s work program for 2023-24 focuses on digitalization, climate-centric financial risks, and the ongoing implementation of the Basel III framework. </p> 
<p>The GHOS currently aims to mitigate potential vulnerabilities in the global banking system by evaluating the space and adapting regulatory measures. These measures are also meant to address risks arising from digital assets and other emerging factors.</p>

Global Central Banks Extend Crypto Regulation Deadline: The Real Reason Behind the Delay

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